Comments on: The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/ A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line. Fri, 19 Mar 2010 02:42:27 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Knowing When 'Not to Buy' is Just as Imporant as Knowing When to Buy | Steadfast Finances http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-11594 Knowing When 'Not to Buy' is Just as Imporant as Knowing When to Buy | Steadfast Finances Tue, 23 Feb 2010 22:03:08 +0000 http://steadfastfinances.com/blog/?p=3239#comment-11594 [...] their peak, the mania driven belief in the bubble that these investments were ironclad, bulletproof, and would never depreciate in value was so [...] [...] their peak, the mania driven belief in the bubble that these investments were ironclad, bulletproof, and would never depreciate in value was so [...]

]]> By: The Stock Market Bubble No One Talks About | Steadfast Finances http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-8145 The Stock Market Bubble No One Talks About | Steadfast Finances Fri, 04 Dec 2009 18:24:16 +0000 http://steadfastfinances.com/blog/?p=3239#comment-8145 [...] you need further evidence, take a look at past investment bubbles once they burst. Now that you’ve got hindsight and history on your side, can you see the [...] [...] you need further evidence, take a look at past investment bubbles once they burst. Now that you’ve got hindsight and history on your side, can you see the [...]

]]> By: Investor Psychology: Your Brain is Hardwired to 'Follow the Herd' | Steadfast Finances http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7823 Investor Psychology: Your Brain is Hardwired to 'Follow the Herd' | Steadfast Finances Mon, 30 Nov 2009 20:24:39 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7823 [...] psychology of bubbles is a incredibly difficult temptation to ignore, so you might want to think twice the next time you [...] [...] psychology of bubbles is a incredibly difficult temptation to ignore, so you might want to think twice the next time you [...]

]]> By: The Katana: Don't Count Out The US Consumer! Week In Review 11/30 | Financial Samurai http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7782 The Katana: Don't Count Out The US Consumer! Week In Review 11/30 | Financial Samurai Mon, 30 Nov 2009 09:02:32 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7782 [...] * “The Psychology of Bubbles: Why We Bought Into The Hype” by Matt highlights the different bubbles and stages investors go through.  The next post I hope to read is which are the next asset classes to become new bubbles, so I can leverage myself to the hilt and invest! [...] [...] * “The Psychology of Bubbles: Why We Bought Into The Hype” by Matt highlights the different bubbles and stages investors go through.  The next post I hope to read is which are the next asset classes to become new bubbles, so I can leverage myself to the hilt and invest! [...]

]]> By: What is the Fear Trade? | Steadfast Finances http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7546 What is the Fear Trade? | Steadfast Finances Thu, 26 Nov 2009 19:04:33 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7546 [...] sell more of the stock as it gains momentum. This “mad” rush to buy can create such a psychological shift in the investment community that it can artificially create an investment bubble (e.g. gold [...] [...] sell more of the stock as it gains momentum. This “mad” rush to buy can create such a psychological shift in the investment community that it can artificially create an investment bubble (e.g. gold [...]

]]> By: This Week’s Roundup » JoeTaxpayer http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7311 This Week’s Roundup » JoeTaxpayer Sun, 22 Nov 2009 13:04:52 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7311 [...] The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype is an excellent, in depth, discussion of bubbles and their cause posted at Steadfast Finances. He includes a chart of the stages of a forming and then crashing bubble, as well as discussions of the bubbles of the most recent ten years, tech, oil, and housing. Excellent post, worth your time. [...] [...] The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype is an excellent, in depth, discussion of bubbles and their cause posted at Steadfast Finances. He includes a chart of the stages of a forming and then crashing bubble, as well as discussions of the bubbles of the most recent ten years, tech, oil, and housing. Excellent post, worth your time. [...]

]]> By: Financial Samurai http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7073 Financial Samurai Mon, 16 Nov 2009 20:56:31 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7073 Ok, Matt... I bet the world doesn't come to an end by end-2012 either. :) Ok, Matt… I bet the world doesn’t come to an end by end-2012 either. :)

]]> By: andrewbpaterson http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7054 andrewbpaterson Mon, 16 Nov 2009 13:30:10 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7054 Love the psychology graph...it probably makes me chuckle because I'm new to investing and wasn't in the game during any of those past bubbles! Love the psychology graph…it probably makes me chuckle because I’m new to investing and wasn’t in the game during any of those past bubbles!

]]> By: Sunday Link Rodeo 8 « Evolution of Wealth http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7036 Sunday Link Rodeo 8 « Evolution of Wealth Mon, 16 Nov 2009 02:22:01 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7036 [...] The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype from @Matt_SF I saw this and just had to add it.  I love the concept of “the herding behavior of humans”.  A must read. [...] [...] The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype from @Matt_SF I saw this and just had to add it.  I love the concept of “the herding behavior of humans”.  A must read. [...]

]]> By: Matt SF http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7024 Matt SF Sun, 15 Nov 2009 16:48:28 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7024 @ Kenyantykoon, I've been trying to do the same thing lately. That's why I mentioned the "buy on the dips" investing/trading mentality of guys like Buffett and Ross. Not sure if I'll ever get there, but it's just a matter of seeing the diamonds in the rough or being a savvy vulture investor and swooping in at the appropriate time (when everyone says it's over, might be the best time to buy). @ Kenyantykoon,

I’ve been trying to do the same thing lately. That’s why I mentioned the “buy on the dips” investing/trading mentality of guys like Buffett and Ross. Not sure if I’ll ever get there, but it’s just a matter of seeing the diamonds in the rough or being a savvy vulture investor and swooping in at the appropriate time (when everyone says it’s over, might be the best time to buy).

]]> By: Matt SF http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7023 Matt SF Sun, 15 Nov 2009 16:44:25 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7023 @ Arohan, That's certainly a possibility, but I tend to get suspicious once the charts go from linear to exponential. I think it's just a case of too far, too fast. @ Arohan,

That’s certainly a possibility, but I tend to get suspicious once the charts go from linear to exponential. I think it’s just a case of too far, too fast.

]]> By: kenyantykoon http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7018 kenyantykoon Sun, 15 Nov 2009 13:00:29 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7018 since i have started investing early, i want to be "the warren buffetts and wilber ross' of this world". These annoyingly patient investors seem to laugh last all the time and then when the wait has paid off big, we call the investing geniuses while it was just good research and patient investing (this is really resounded in all the books that these super investors have endorsed and since it seems to work for them, i guess it is the way for me) since i have started investing early, i want to be “the warren buffetts and wilber ross’ of this world”. These annoyingly patient investors seem to laugh last all the time and then when the wait has paid off big, we call the investing geniuses while it was just good research and patient investing (this is really resounded in all the books that these super investors have endorsed and since it seems to work for them, i guess it is the way for me)

]]> By: Arohan http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7013 Arohan Sun, 15 Nov 2009 09:10:37 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7013 Not a gold bull or anything but it may also be that today's levels may actually turn out to be a good entry point. While future is uncertain, so is the future of the US dollar. Not a gold bull or anything but it may also be that today’s levels may actually turn out to be a good entry point. While future is uncertain, so is the future of the US dollar.

]]> By: Matt SF http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7009 Matt SF Sun, 15 Nov 2009 07:32:51 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7009 Could be $2000 per ounce, maybe $3000/ounce. Who knows? I'd bet on the Doomsday scenario happening in 2012 before the Dow hit 20k by end of 2010. ; ) Could be $2000 per ounce, maybe $3000/ounce. Who knows?

I’d bet on the Doomsday scenario happening in 2012 before the Dow hit 20k by end of 2010. ; )

]]> By: Financial Samurai http://steadfastfinances.com/blog/2009/11/14/the-psychology-of-bubbles-using-hindsight-to-examine-why-we-bought-into-the-hype/comment-page-1/#comment-7007 Financial Samurai Sun, 15 Nov 2009 07:07:11 +0000 http://steadfastfinances.com/blog/?p=3239#comment-7007 Are you saying we aren't going to Gold $2,000 and Dow 20,000 by year-end 2010? Are you saying we aren’t going to Gold $2,000 and Dow 20,000 by year-end 2010?

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